Thursday, November 20, 2008

Microentrepreneurship and development in Uruguay: who really needs Oikcoredit financing?

For the understanding of many living abroad, Uruguay is a country that cannot easily is linked with poverty or disadvantaged people. Seldom are examples from this land mentioned in the discussions regarding development efforts or poverty alleviation cases. This is far from true, I was told. There is a silent, but broad part of the population that lives under poverty conditions, especially farmers.

The Aymara world: the challenges of adapting microfinance practices to a bi-cultural environment

A journey to the Bolivian Amazon – Who are the real farmers behind El Ceibo’s success?

Virginia, from our regional office in Uruguay, will join me in this trip. None of us has visit El Ceibo before, so we had many expectations. We left the hotel very early for a two days trip to Sapecho, in the Alto Beni area. Getting there and coming back would be a challenge. The shortage of gasoline in the capital city obligated us to go from gas station to gas station for filling up the tank. Two hours lated than planned, we left La Paz for our eight hours journey to Sapecho. The first views of the Andes, with llamas and alpacas crossing the road are impressive. It feels as of you could touch the sky by raising your hand. As one starts descending, the landscape changes and the empty mountains become greener and greener while trees become higher. This beautiful view misleads your attention of the very dangerous road ahead, which makes me experience first-hand the difficulties of El Ceibo farmers to bring their cacao to their chocolate factory in El Alto.

Sapecho is a small town in the Bolivian Amazon that hosts El Ceibo’s central offices, gathering facility and experimental center. El Ceibo is a second-tier cooperative or organic, fair trade cacao farmers from Suyungas, Coranavi and Laricaja provinces in Alto Beni. We were welcomed by a committee of representatives who share with us the story of the cooperative. It was founded in 1977 representing 11 cooperatives. After 31 years, El Ceibo has 49 affiliated cooperatives and 1400 members, benefiting more than 6000 people. Not only do El Ceibo produces organic cacao, they also manage the whole production chain commercializing chocolates products for the domestic market as well as cacao-based products for the international fair trade markets in Europe and Japan.
Oikocredit’s relation with El Ceibo began in 1987. The same year when they began to pay a fair price for their products (they would get a certification in 1997, but they had fair trade practices long before). This first loan was used for working capital. Oikocredit’s financial support through more than 20 years is acknowledged by El Ceibo members, as Saturnino Manani says “For us, Oikocredit is an institution that has helped us to commercialize. In Bolivia, banks do not have any confidence in cooperatives. Oikocredit has a special relation with coops. Oikocredit is a partner for the development of the cooperatives in Bolivia.”

Outside the gathering facility, I met 44 years old Inocencio Figueroa Herrera. He lives in San Antonio town, and is the president of Cooperativa Sejana. His 2 hectares of organic cacao farm provides for his family. Additionally he grows organic citrics, oranges, mandarines and bananas.
Don Inocencio has worked very hard to reach where he is now. He left his hometown in Oruro’s western area to Alto Beni looking for a better life. In 1973, he bought his first piece of ground. As an immigrant from an Andean area, he grew potatoes, quinoa, caƱahua and raised some sheep/ovines, but this does not generated sufficient income to provide his wife and eight children. His personal journey took him to Northern Chile as worker, where he found out that he liked agriculture, especially irrigation activities. So he came back to Alto Beni to produce cacao. At the beginning, it was very difficult as he had little knowledge about the different varieties, yield, and quality. Six years ago, he became a member of the Sejana cooperative. Before that, he received for his cacao any price wholesalers would establish, which was not enough for meeting ends. Through El Ceibo, he received training to convert his plot into an organic farm. This process took him three years.

Don Inocencio shows me how to roar the cacao to let it dry with the sun. Without much problem he climbed to the top of a larger in-house facility to roar the cacao. “Thanks to El Ceibo I’ve learned good techniques to grow organic cacao. Moreover, I have developed myself. I receive a fair price for my cacao and many benefits to have a better life. El Ceibo provides guarantees as well as loans in difficult times.” The cooperative provides emergency health loans and jobs for members. Don Inocencio would like to equip his cacao plot, to get new tools, a cacao drier with rails, and a small truck (pick up) for transporting. He is grateful for the warm welcome from other members. “I do not feel isolated anymore.” As the night starts to fall, don Inocencio starts his journey back home.

It is a very sunny morning when we arrived to El Ceibo experimental center. Sergio Ichuta greets us friendly by the entrance. At his 28 year old, he is deputy director of the agroforestry department. El Ceibo provides training and job opportunities for its members. This is much welcome by the farmers, not only because of the personal development, but also because they can give something back to the cooperative. It stroke me how important is to work for El Ceibo and share with other cooperative members as a return for all the benefits they receive. But they do not feel it as an obligation; the farmers do it with much pleasure.
We follow Sergio around the center, where the cooperative tries growing different cacao varieties and use different techniques. For the first time in my live, I proof the cacao fruit. It is greasy and the taste is quite sour, but nice. A bit far away, I found Marta Sipe and Lidio Vaquiata doing seed grafting. It is a labor intensive job. Marta and Lidio are relatives of El Ceibo members. Dispite their different ages and stories, they share the same dream: to buy a cacao plantation plot. With the training and experience they gain working for El Ceibo and their savings they are confident that their dream will soon come true.
Our last visit is to the cacao plantation of the late Arturo Masias, one of the cooperative’s founders. As eldest son, Basilio Masias took charge of the farm on behalf of his siblings after his father passed away. Reina Condori, Basilio’s wife, and their four children came to greet us. The youngest one is carried on Reina’s back and is only a few months old. She explained us how the whole family is involved during the harvest. While Basilio climbs up the trees to pick up the cacao beans, she cuts them in two. Reina made a brief demonstration. I was impressed by Reina’s ability to cut cacao fruits using such a huge and impressive knife. We then walked around the plantation, where the last cacao fruits were hanging. I tried to imagine how the plantation would look like just before the harvest season. Surrounding the cacao, they grow organic bananas that are used not only to provide some shadow to the cacao, but also for consumption. With pride, Reina told us that they were able to build a brick house thank to the premium they received from the cacao. We left them as Reina had to prepare lunch for the family and put the baby to sleep.
Back to El Ceibo quarters we were invited for lunch. It was nice to see again some of the farmers we met the day before and say good-bye before taking the long road back to La Paz.

Just arrived

It takes more than 14 hours flying to arrive to Bolivia. El Alto International Airport is located in at 4150 meters (13,615 feet) above sea level. At first moment, it is difficult to take it easy to avoid any effects of the soroche, the altitude sickness. It’s cold and misty as the car drives down to La Paz city. The disturbs in the country seem not have reached the capital city, which still sleeps in this very early Sunday morning. After some sleep I will prepare for the visit to cacao producers in Sapecho in the Bolivian Amazon tomorrow.